Is Enterprise Bancorp, Inc. overvalued or undervalued?

As of 17 April 2025, the valuation grade for Enterprise Bancorp, Inc. has moved from expensive to fair, indicating a shift in its market perception. The company is currently fairly valued. Key ratios include a P/E ratio of 12, a Price to Book Value of 1.30, and an EV to EBITDA of 10.14.
In comparison to peers, Enterprise Bancorp's P/E ratio of 11.54 is lower than Burke Herbert Financial Services Corp., which has a P/E of 15.15 and is deemed very expensive, while Northeast Bank (Maine) stands out with a very attractive P/E of 8.86. Additionally, the company's PEG ratio of 0.82 suggests that it may be undervalued relative to its growth potential. Notably, over the past year, Enterprise Bancorp has outperformed the S&P 500 with a return of 71.03% compared to the index's 10.26%, reinforcing its valuation story.